Secondary economic activities Flashcards
Examples of secondary economic activities.
Baker, butcher, carpenter, chef, tailors.
Define ‘Secondary Economic Activities’
The changing of a raw material into a finished product.
What is a factory?
A factory may be described as a system of inputs, processes and outputs.
Examples of inputs, processes and outputs.
Wood, cutting, table.
wool, sewing, clothing.
wheat, baking, loaf.
milk, pasteurising, milk.
lead, shaping, pencil.
Factors that affect the location of factories.
Labour/workforce, capital, services, transport, government policy, EU policy, markets, raw materials/resource materials.
Factors affecting factory location:
Labour/workforce
Cheap labour found in Asia,
or
if you need a highly skilled workforce, you may locate near universities/colleges, etc.
Factors affecting factory location:
Capital
Some countries may offer grants to help start up your factory eg IDA in Ireland (Industrial Developmental Agency)
Factors affecting factory location:
Services
A lot of factories locate in Industrial estates to get access to water/electricity and broadband, etc.
Factors affecting factory location:a
Transport
Factories tend to locate in areas where there are good road networks, ports and airport.
Factors affecting factory location:
Government tax
Some governments will offer low corporation tax rates to encourage factories to locate there. Eg in Ireland the rate of Corporation tax is 12.5%
Factors affecting factory location:
EU policy.
If a factory locates within the EU, they can have free trade with other member states. Also 18 of the 28 members use the same currency.
Factors affecting factory location:
Markets.
Some products gain volume after they have been processed, eg baking. For that r ason, bakeries choose a market location, this they are located in or beside cities. In this way, the transport cost of bread to local shops and supermarkets is kept low.
Factors affecting factory location:
Raw materials/resource materials.
Factories locate near where they can get the resource material that they need. Eg dairy processing factories locate near dairy farms.
Case study: Intel
- Light industry: uses moderate amounts of raw materials.
- Location: Leixlip, Co. Kildare
- Makes microchips for computers.
-Located there because of:
Tax incentives and grants offered by the government.
By having a factory in Ireland, they have free trade with other EU countries.
Ireland is an english-speaking country.
Links with NUI Maynooth (70% of workers have a 3rd level qualification.)
Good transport links as factory is located near m4/m50/m1 airport.
Earthquake-free zone.
Case Study: Rusal Aughinish
- Heavy industry: uses heavy machinery and huge plants.
- Located in Aughinish Island, 28km downstream from Limerick City on the Shannon Estuary.
- Alumina refinery that extracts alumina from the resource material bauxite.
-Located because:
Bauxite is a bulky material that comes mainly from West Africa by ship, and the product (alumina) is re-exported. Therefore, it is on a coastal location.
Good transport as the Shannon Estuary is deep enough to take very large ships known as bulk carriers
The island is large enough to store the waste material. (an inert mud)
Many of it’s workers live in nearby towns such as Foynes, Askeaton and Newcastle West.
They are provided services such as water, telecommunications and electricity.
What is a footloose industry?
A footloose industry is a factory that is not tied to any one location. Most modern light industries can be described a footloose because of:
transport,
services,
industrial estates.
British Iron and Steel industry.
1700s -
Iron + steel industries located near forests
Cut down trees and burned to make charcoal.
Charcoal was used to melt iron + steel.
1800s -
Industrial revolution increased demand for iron + steel.
New resource (coal) discovered.
Coal was used to melt iron + steel because it burned at high temperatures.
1960s -
Coal deposits were becoming exhausted.
Little coal available.
1980s -
Closure of coal mines by Margaret Thatcher.
Iron + steel industries moved to coastal areas to import and export iron + steel products because Asian countries were selling it cheaper.
What is industrial inertia?
Industrial inertia was when a factory remains in a location even though the original reason for locating there no longer exists.
Eg iron + steel factory still located in sheffield.
What is a niche product?
Goods manufactured for a specific purpose. Eg surgical equipment for hospitals.
Iron + steel industries have modernised and upskilled their workers to make niche products.
Changes in the role of women.
There are many factors affecting the changes in the role of wonen. These include:
-Free secondary education was introduced in 1967. This increased education levels for girls and boys.
Nowadays many women enter third-level education.
- The increase of the cost of homes meant that both partners had to work to pay the mortgage.
- The Women’s Liberation Movement in the 1970s led to many changes in the status of women.
- Gender equality laws ensured women had equal pay and equal status in jobs.
Reasons why clothes are being made in newly industrialised countries:
Industrialised regions.
Although Western Europe, the USA and Japan still dominate world manufacturing, other regions are catching up. This is because multinationals are transferring their factories to Asia and Latin America, where their labour costs are cheaper.
Reasons why clothes are being made in newly industrialised countries:
Newly Industrialised Countries.
Newly Industrialised Countries are attractive to multinationals because of their low labour costs. These include Taiwan, South Korea, China.
These countries have only started to rise in manufacturing.
Reasons why clothes are being made in newly industrialised countries:
Labour Costs
South-East Asian countries have low labour costs, which attract multinationals. Eg. Taiwan.
Industrially Emergent Regions.
These regions have little or no modern manufacturing. Eg. Most of Africa.
(This is because of poor services + badly developed transport systems.)
